Broker Check

Life Insurance

How Your Life Insurance Policy Fits into Your Financial Plan

Life insurance can provide an income for your dependents, but did you know it can also help you save money on taxes? Not every life insurance policy offers tax-saving benefits, which is why at Massie & Associates, we integrate tax planning into your financial plan. We tailor your life insurance coverage to your specific situation to help you meet your financial goals.

Term Life vs. Permanent Life Insurance

Term Life vs. Permanent Life Insurance

With life insurance, you can choose between term and permanent life insurance. Term life insurance is a cost-effective option to purchase temporary coverage as a financial protection for your dependents. Term life policies usually last for 20–30 years.

Permanent life insurance also includes death benefits, but unlike term insurance, it doesn’t expire. A permanent or whole life insurance policy also has an investment portion built into it. It’s an investment vehicle you can use for your retirement.

Your Life Insurance Retirement Plan

An indexed universal life policy is like a life insurance retirement plan. It provides great upside potential, flexibility, and tax-free gains. If you’re interested in a tax-free investment to supplement your retirement accounts, an indexed universal life insurance policy might be a good option for you.

Reasons to Include Life Insurance in Your Financial Plan

Every situation is unique, which is why it’s important to consult with our experienced professionals about your needs. Here are some common reasons for purchasing a life insurance policy:

  • One or more people financially depend on you
  • You’re a business owner
  • You want to prevent estate taxes for your heirs
  • You need alternatives to long-term care insurance
  • You want to enjoy tax-free gains

Our goal is to help you build a secure financial future for yourself and your family. Together, we’ll review your financial plan to help you determine how life insurance might fit into it.

Frequently Asked Questions

While an indexed universal life insurance can be a great addition to your employer-sponsored or individual retirement account, it’s not meant to be a replacement. The biggest risk is that the life insurance policy can be canceled if you stop paying premiums, which is not the case with a 401(k).

An indexed universal life insurance policy has two components: a death benefit and an additional cash value you can borrow against. The cash value component is tied to the stock market index and offers higher potential returns than other forms of life insurance.

It really depends on your specific situation. Term life insurance can be a great option for you if you need a low-cost solution to providing for your dependents. Its temporary duration, usually 20 to 30 years, only provides security for a short term. If you want to use your life insurance to build up cash savings, a term life policy is not the right choice.

Let’s Review Your Life Insurance Policy

At Massie & Associates, we understand there’s no one-size-fits-all solution for life insurance or your financial plan. With over 20 years of experience, we’re here to help you find the best solution. Reach out today to schedule a consultation.

Contact Us
Weighing the Benefits of Prepaid Debit Cards

Weighing the Benefits of Prepaid Debit Cards

It's important to understand the pros and cons when considering a prepaid debit card.
Learn More
Estate Management Checklist

Estate Management Checklist

Is your estate in order? This short quiz may help you assess your overall strategy.
Learn More
What Is a 1035 Exchange?

What Is a 1035 Exchange?

1035 exchanges provide a way to trade-in an annuity contract or life insurance policy without triggering a tax liability.
Learn More

What Is a Roth 401(k)?

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.

The Pre-Retirement Checklist

This checklist can give you a quick snapshot of how prepared you are.

Social Security: Maximizing Benefits

There are other ways to maximize Social Security benefits, in addition to waiting to claim them.

Where Will Your Retirement Money Come From?

Retirement income may come from a variety of sources. Here's an overview of the six main sources.

IRA Withdrawals that Escape the 10% Tax Penalty

The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown.

What's So Great About a Rollover?

Making a career move requires tough decisions, not the least of which is what to do with the funds in your retirement plan.

View all articles

Self-Employed Retirement Plans

Estimate the maximum contribution amount for a Self-Employed 401(k), SIMPLE IRA, or SEP.

My Retirement Savings

Estimate how long your retirement savings may last using various monthly cash flow rates.

Annuity Comparison

This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year.

Saving for Retirement

This calculator can help you estimate how much you may need to save for retirement.

A Look at Systematic Withdrawals

This calculator may help you estimate how long funds may last given regular withdrawals.

Roth 401(k) vs. Traditional 401(k)

This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).

View all calculators

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

View all presentations

Rightsizing for Retirement

What does your home really cost?

Dreaming Up an Active Retirement

When you retire, how will you treat your next chapter?

18 Years’ Worth of Days

The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

Questions to Consider When Buying a Vacation Home

Doing your research is key before buying a vacation home.

A Fruitful Retirement: Social Security Benefit

Taking your Social Security benefits at the right time may help maximize your benefit.

Risk Tolerance: What’s Your Style?

Learn about what risk tolerance really means in this helpful and insightful video.

View all videos

Have a Question?

Thank you!